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2016-10-11 16:33:15

KEM

Kemet

$3.58

-0.07 (-1.92%)

16:33

10/11/16

10/11

16:33

10/11/16

16:33

Kemet announces additional gross margin improvement action

KEMET Corporation announced that, in a continuance of its effort to further improve gross margins, earnings, and cash flow, it is undertaking the following action: The Solid Capacitors group will modify its vertical integration strategy by relocating its K-Salt facility equipment to its existing Matamoros Mexico plant. The company expects to achieve annual operating cost savings of approximately $3.5M-$4.0M and improve annual working capital by approximately $8.0M with improvements beginning in Q4 of FY17. Non-cash impairment charges of approximately $2.1M, cash severance charges of approximately $0.2M, and cash charges for equipment relocation costs of approximately $1.2M are expected. The company will incur charges in Q2 ending September 30, with the exception of the equipment relocation costs that are expected to be incurred in Q3 of FY17.

KEMKemet

$3.58

-0.07 (-1.92%)

05/23/16

RILY

05/23/16INITIATIONTarget $4.75RILYBuy

Kemet initiated with a Buy at B. Riley

B. Riley analyst Josh Nichols started Kemet with a Buy rating and $4.75 price target. The company is a leading producer of capacitors with an improving cost structure, Nichols tells investors in a research note.

05/23/16

05/23/16INITIATION

On The Fly: Top five analyst initiations

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Red Rock Resorts (RRR) initiated with a Buy at BofA/Merrill, Deutsche Bank and Stifel as analysts said it will benefit from a Las Vegas Locals recovery and from a dominant market position. The company was also initiated with an Overweight at JPMorgan and a Neutral at Goldman. 2. Kemet (KEM) initiated with a Buy at B. Riley by analyst Josh Nichols, who said the company is a leading producer of capacitors with an improving cost structure. 3. Intuit (INTU) initiated with a Buy at Goldman based on expectations of Quickbooks market expansion and ARPU decline stabilization leading to Small Business growth and profitability. 4. NetSuite (N) initiated with a Sell at Goldman by analyst Jesse Hulsing, who said Street estimates imply a reacceleration in bookings growth, which he questions given 2015 productivity declines and increasing competition. 5. Oshkosh (OSK) initiated with a Neutral at Macquarie with analyst Sameer Rathod saying shares are fairly valued at current levels. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.